Toyota Next To Join Mexican Assembly Fiesta

Derek Kreindler
by Derek Kreindler

Although Toyota has previously looked to maximize capacity at its existing North American plants, a report by Bloomberg suggests that the company will depart from this policy and look to establish a manufacturing facility in Mexico, following the lead of Honda, Mazda and Nissan in the Japanese auto industry’s drive to localize production.

Currently, Toyota has a small facility in Tijuana that produces the Tacoma pickup from CKD kits, and has signed an agreement with Mazda for the automaker to build a subcompact car that will likely be branded as a Scion. But they are without a full-scale factory of their own, at a time when virtually every other auto maker is expanding into Mexico.

The Mexican expansion is seen as a necessary move for many auto makers, allowing them to expand capacity in the NAFTA zone while taking advantage of far lower labor costs and generous tax incentives. This has led to a boom in auto manufacturing in Mexico, with relatively little investment in traditional locations like the Midwest and Canada.

Derek Kreindler
Derek Kreindler

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  • Big Al from Oz Big Al from Oz on Sep 12, 2014

    Mexico? Why? These two articles are a great place to start if you want to understand "The Why to Mexico Move". I do think the UAW does influence the move to Mexico to some degree, abeit, small. The UAW are anti-progressive and are a thorn in the side nowadays of many Americans. They are parasites now looking for more hosts down in the South. Money and power is what the UAW is all about, or they'd not charge a red cent for their efforts. We have volunteer organisations that look after our Military members, I don't pay a cent as they are volunteers to the cause. They don't expect to be paid. Real people, not parasitic.

  • DenverMike DenverMike on Sep 12, 2014

    @Derek Kreindler, "Currently, Toyota has a small facility in Tijuana that produces the Tacoma pickup from CKD kits..." Can you expand on that? That's the second time I've heard that said by TTAC staff in passing, with no explanation. After a search, I haven't seen it said from anyone, anywhere else. The whole thing with the Tacoma build is a little fishy. The Tacoma is built in San Antonio too, but Tijuana only builds Tacoma crew cabs for local and Canada consumption mostly. Yet anywhere I search in the US for used Tacomas, Tijuana Tacomas (1st VIN digit is a "3") are found everywhere and plentiful, along side San Antonio Crew cab Tacos. Then the Tijuana facility builds all the Tacoma pickup beds for San Antonio too.

  • DenverMike DenverMike on Sep 12, 2014

    Corolla buyers don't really care where they're made. They couldn't tell you if it's fwd or rwd. Just keep the top money makers, top marques hecho en the good ol' USA. Camry, Tundra, etc. Like how would it look if the Hellcat was made in Mexico? Or the Challenger? These buyers know what they're getting and care where it's made. The Camaro from Canada gets a pass. Although Silverado and Ram fan boys aren't happy about there trucks being made south of the border. But their extreme loyalty runs deep.

  • Dan Dan on Sep 12, 2014

    Inevitable when you have a free trade agreement with another country so much poorer and cheaper than this one. What's in it for Toyota to build a plant here? Higher labor costs, higher taxes, extremely expensive EPA rules, an outright insane legal climate. Of course they're going to go to Mexico instead. They'd be negligent not to. The Republicans want to race those labor costs to bottom and pay 4 bucks an hour here, too. The Democrats want to put everyone involved on both sides of the border on welfare for life, and pay for it with even higher taxes on what business they haven't driven out yet. I want to throw up.